Progressing industrial hemp fibre cropping in Scotland
Industrial hemp is gaining renewed attention in Scotland as a versatile crop with the potential to support farm resilience, supply low鈥�carbon industries, and contribute to climate goals.听听
A听delivered by SAC Consulting, funded by听IBioIC听and Scottish Enterprise, highlighted hemp鈥檚 role as a valuable break crop, a renewable raw material for manufacturing, and a means of carbon sequestration.听
The study听explored听the feasibility of setting up a grower co-operative supplying a decortication and cleaning plant,听processing up to 12,000 tonnes听annually听from 2000ha, in turn supplying manufacturers and retail distributors. Capital cost of the decortication and cleaning plant was estimated at around 拢5 million, preferably with significant investment from farmers to obtain added value from the hemp crop.听
This primary processing, decortication and cleaning involves mechanically removing the 鈥榖ast鈥櫶齠ibre from the woody core (鈥榮hiv鈥� or 鈥榟urd鈥�), producing fibre for insulation products and shiv for applications听hempcrete, horticultural growing media, animal bedding, and briquettes.听
With two commercial seasons now completed in Scotland,听what have we learnt so far about the requirements for听establishing听industrial hemp production co-ops in Scotland?听
Sufficient processing capacity听
Although manufacturers such as听IndiNature听are based in Scotland, there听remains听a gap in primary processing capacity. High capital costs, uncertain construction demand, and limited early-stage incentives have slowed investment in decortication facilities across the UK and EU. Increased and more consistent demand,听particularly from the construction sector,听would significantly reduce this barrier.听
Demand for hemp fibre products听
It is hard for biofibre products, such as building insulation and soundproofing to compete with products derived from fossil fuel that have听established听manufacturing infrastructure and听long-standing听markets for their products. The hemp fibre products superior breathability and moisture repelling properties have found outlets in retrofitting older buildings and social housing schemes.听Properties听have been built using hempcrete,听but this is niche as it requires skilled听tradesmen and听appeals to more ecologically conscious consumers.听听
International examples, such as the 听demonstrate听how targeted incentives can stimulate demand for carbon-negative materials. Developing similar approaches in the UK could help unlock markets for Scottish-grown fibre.听
Capital cost of processing facilities听
The听2024 report听estimated the cost of full decortication and associated processing facilities to be in the region of 拢5m to 拢6m,听though lower-cost alternatives (拢1-1.5 million) are emerging.听These systems process hemp into compressed boards using shorter retting periods, potentially reducing harvest risk.听听
Hemp听required听for this process can be baled after a shorter retting period, which would help de-risk harvest.听While they may offer a practical entry point, further work is needed to assess their efficiency and scalability.听
Investment support听
Some pump priming funding will be necessary to help with capital costs and to help cash flow through the plants start up years.听A farmer co-operative structure听could support coordination, quality assurance, and market development. Partnering with existing agricultural co-operatives may help reduce overheads and accelerate progress.听
Encouraging farmers听
Farmers will need to see a profit from the crop that听is competitive听in the rotation听in addition to the known听benefits to yield听in crops following hemp. Industrial hemp can involve minimal work after sowing, but will require contractors with specialist cutting equipment,听tedders听and the听optimum听type of baler.听听
Dutch farmers have support payments for low carbon crops that helps underpin their income from hemp.听Green Inclusive听offers one or multi-year cultivation contracts in which a fixed price per tonne of dry matter yield is agreed in advance. In addition, the grower receives an听additional听CO鈧�听payment per tonne of dry matter.听听
Could a carbon payment evolve for crops that lock up carbon long term to reward farmers for their contribution to reduction of greenhouse gas emissions?听
Availability of seed听
Seed supply continues to be constrained, with delivery delays posing risks to听timely听sowing.听However, there has been recent progress: Precision Plants, a UK听agri-biotech company, has secured 拢912,000 through the Defra programme to develop new hemp varieties for grain,听fibre听and dual-purpose use. These will progress from laboratory development through field trials, with the aim of gaining approval for inclusion in the UK鈥檚 official crop variety register.听
2025 harvest reflections
The 2025 season illustrated both the potential and challenges of hemp production in Scotland.听The crops grew very well during a favourable growing season and reached quite impressive heights by听August.听However,听the impact of Storm Floris bending听and听brackling听the stems,听following听a dry August that delayed retting and听then听a wet September,听led to difficult baling conditions that stretched into October.听
Brackled听stems meant longer fibres that听often-blocked听baler intakes and slowed down听work rate. The wet September and October also left a proportion of bales above the normal target moisture content of 15-17oC.听Long time growers in England experienced similar conditions听however听and commented upon just how atypical the 2025 season was and听do nonetheless听still remain听committed to the crop.听The 2025 crop will be sent to Yorkshire, the nearest听facility,听for processing.听
Industrial hemp has clear potential in听Scotland but听unlocking it will require joined-up progress in processing capacity, market development, and policy support.听With the right investment and incentives, it could become an important crop for both farm resilience and the transition to a听low鈥�carbon听economy.听
Mark Bowsher-Gibbs, Principal Consultant,听Mark.Bowsher-gibbs@sac.co.uk
Posted by SAC Consulting on 20/05/2026
